The mutual has launched the fee-free, five-year mortgage at a fixed rate of 4.30%.
Matt Bartle, head of product and pricing at Leeds Building Society, said: “We’re constantly refining and enhancing our mortgage products and criteria to achieve our aim of helping people have the home they want.
“This latest deal will assist home buyers with smaller deposits, suiting people looking to take the first step onto the property ladder. It also complements our suite of products, which includes Help to Buy and Shared Ownership mortgages and an existing two-year 95% LTV product.”
Lenders have been adding ‘extras’ to first-time buyer products as competition hots up with 56% of deals charging no product fee, according to Moneyfacts, and just six per cent of fixed deals at 95% LTV charge no product fee, come with a free valuation, free legal fees and offer cashback.
Finance expert Rachel Springall said: “It’s very important for first-time buyers to weigh up not just the interest rate but also any fees or incentives to find the best possible deal for them. As an example, elsewhere West Brom BS has a deal priced at 3.39% fixed to 31 May 2020 with no product fee and comes with a free valuation.”
Last month the number of 95% LTV deals topped 300 for the first time in ten years, according to Moneyfacts, with eight lenders re-entering the market and launching products for first-time buyers with a small deposit.